Outperformance of France’s economy

The growth of the French economy has strengthened since the end of the third lockdown last May. Real GDP regained its pre-crisis level in Q3, slightly ahead of major neighbouring countries, Germany and Italy. Now that the shock of the pandemic has largely worn off, the pace of recovery will moderate. The outlook remains positive nonetheless due to widespread vaccination coverage, strong job gains and accommodative financial conditions. The major downside risk is the inflation sho...